Introduction
Welcome to the first lesson. I’m ForexWhiz, and I will teach you everything about Forex trading through my experience.
Forex, or Foreign Exchange, is the market where I buy and sell currencies every day to make profits. It is the biggest financial market worldwide, open 24 hours, 5 days a week. I trade currency pairs, always buying one currency and selling another.
What Are Currency Pairs?
I always trade currency pairs because currencies are priced relative to each other.
For example, when I look at EUR/USD = 1.1500, this means that 1 Euro costs 1.15 US Dollars.
Here, Euro is the base currency; US Dollar is the quote currency.
If I expect Euro to get stronger, I buy this pair, meaning I buy Euros and sell Dollars.
If I expect the Euro to weaken, I sell this pair
Why Forex Prices Change?
Prices move because of many reasons, and I keep track of these:
Economic news like inflation reports and interest rate decisions. Political events that affect confidence in a currency. Trade balances and foreign investments. Market sentiment and big traders’ actions.
When I hear a country’s economy is struggling, I expect its currency to weaken, and I trade accordingly.
How I Trade Forex
I decide to buy or sell based on my analysis.
When I believe the base currency will strengthen, I buy (go long). When I believe it will weaken, I sell (go short).
For example, if I see signs that the Eurozone economy is improving, I buy EUR/USD, hoping the price will rise.
Brokers and Trading Platforms I Use
I trade using brokers who give me access to the Forex market through platforms like MetaTrader 4 or MetaTrader 5.
They also offer leverage, which lets me control larger trade sizes with less money.
But I am careful because leverage can increase both my profits and losses.
The broker earns from the spread — the difference between the buy and sell price
Here’s my recommended broker
Forex Market Sessions I Watch
The market never sleeps, but I trade mostly during the European and American sessions when liquidity is highest.
This is when I find the best opportunities for price movement.
Important Forex Terms I Use Daily
Pip: The smallest price movement; usually 0.0001. Lot: The size of my trade. 1 standard lot equals 100,000 units. I often trade mini lots (10,000) or micro lots (1,000) to manage risk. Spread: The difference between buying and selling price; I always check this to avoid high costs. Leverage: I use leverage like 1:100 to increase my buying power but manage it carefully. Margin: The money I need in my account to open a leveraged trade.
How I Calculate Profit and Risk: Pips, Lots, and Leverage
When I open a trade for 1 mini lot (10,000 units) on EUR/USD, each pip movement equals about $1.
So, if price moves 10 pips in my favor, I make $10 profit.
Using leverage 1:100, I only need $100 margin to control this position.
But I always calculate my risk before entering a trade.
Summary of Lesson 1
Forex is the market where I trade currency pairs. Prices change based on economic and political factors. I buy when I expect the base currency to rise and sell when I expect it to fall. I use brokers and platforms with leverage to trade. I watch sessions where the market is most active. I understand pips, lots, spreads, leverage, and margin to manage my trades well.
That is my introduction for you. Next, I will teach you how I decide when to enter and exit trades with detailed examples and step-by-step guides.
Forexwhiz university 